1 Discontinued June 30, 1924.

CONSTRUCTION DIVISION

During the latter part of the fiscal year 1923 the need for a final determination of bureau policy with regard to method of handling new construction work became apparent and was given careful and detailed consideration. This study was based on the belief that some improvement could be effected in existing methods of handling construction work. New construction work provided for under the second Langley Act had until that time been undertaken under the supervision of the office of the Quartermaster General, War Department, and of the Bureau of Yards and Docks, Navy Department, those offices preparing plans and specifications for new construction and providing field supervision during the execution of the work. This arrangement, under which two Government departments undertook certain major projects of construction to satisfy the needs of a large independent bureau, presented certain problems of administration and execution which were difficult of satisfactory solution. Important among these problems were a thorough coordination of facilities provided with the actual need of the Veterans' Bureau, the proper allocation of expenditures within the limits of total funds available, and the carrying forward of major projects of construction through the agency of an independent branch of the Government without confusion and without delay in arriving at the manifold decisions which must be made prior to the beginning of actual work and i throughout the process of construction.

Coincident with this study in regard to new construction, the need for improvement in the administration of the various maintenance and operation activities of the bureau became apparent. With 47 hospitals being operated by the Veterans' Bureau, the daily problems in regard to repairs, alterations, and betterments of existing properties were manifold and the need for the institution of systematic methods urgent. The need for the establishment of efficient supervision and administration of operation activities was equally appar ent. There is no question but that able and experienced personnel and efficient organization are fully as essential for the successful administration of extensive maintenance and operation activities as for the successful administration of new construction work. As will be indicated hereinafter, the annual expenditures of the bureau for maintenance and operation of physical plant are practically as great as those for new construction under current appropriations.

The bureau was already provided with a maintenance and repair organization operating as a subdivision under the supply division. This organization was not, however, responsible for the administration of operation activities nor for the supervision of personnel engaged therein, these functions being assigned to the medical division. Included in the maintenance and repair subdivision were men qualified to fill the majority of the principal executive and technical positions in an organization competent to handle new construction as well as maintenance and operation. Additional